AudioCodes
Market Cap
US$704.6m
Last Updated
2020/02/16 23:42 UTC
Data Sources
Company Financials +
Executive Summary
AudioCodes Ltd. designs, develops, and sells voice over IP (VoIP), converged VoIP, and data networking solutions, products, and applications for enterprise unified communications, contact centers, service provider business services, mobile VoIP, and cloud virtualized data centers worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with high growth potential.
Similar Companies
Share Price & News
How has AudioCodes's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AUDC has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
6.6%
AUDC
-1.3%
US Communications
1.5%
US Market
1 Year Return
88.7%
AUDC
-5.8%
US Communications
20.1%
US Market
Return vs Industry: AUDC exceeded the US Communications industry which returned -5.1% over the past year.
Return vs Market: AUDC exceeded the US Market which returned 20.1% over the past year.
Shareholder returns
| AUDC | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.6% | -1.3% | 1.5% |
| 30 Day | -12.1% | -3.7% | 1.4% |
| 90 Day | 0.6% | 3.7% | 8.7% |
| 1 Year | 91.0%88.7% | -3.8%-5.8% | 22.7%20.1% |
| 3 Year | 253.2%239.2% | 33.1%25.0% | 50.1%40.5% |
| 5 Year | 368.3%349.7% | 59.4%41.7% | 73.1%54.1% |
Price Volatility Vs. Market
How volatile is AudioCodes's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
AudioCodes Ltd. (NASDAQ:AUDC) Will Pay A US$0.13 Dividend In 4 Days2 weeks ago | Simply Wall St
Imagine Holding AudioCodes (NASDAQ:AUDC) Shares While The Price Zoomed 311% Higher4 weeks ago | Simply Wall St
Should You Rely On AudioCodes's (NASDAQ:AUDC) Earnings Growth?Valuation
Is AudioCodes undervalued compared to its fair value and its price relative to the market?
177.63x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: AUDC ($24.15) is trading above our estimate of fair value ($14.5)
Significantly Below Fair Value: AUDC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: AUDC is poor value based on its PE Ratio (177.6x) compared to the Communications industry average (26.1x).
PE vs Market: AUDC is poor value based on its PE Ratio (177.6x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: AUDC is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: AUDC is overvalued based on its PB Ratio (7.7x) compared to the US Communications industry average (1.8x).
Next Steps
Future Growth
How is AudioCodes forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
69.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AUDC's forecast earnings growth (69.9% per year) is above the savings rate (1.7%).
Earnings vs Market: AUDC's earnings (69.9% per year) are forecast to grow faster than the US market (14.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: AUDC's revenue (8.8% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: AUDC's revenue (8.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AUDC's Return on Equity is forecast to be high in 3 years time (31.2%)
Next Steps
Past Performance
How has AudioCodes performed over the past 5 years?
35.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AUDC has a large one-off loss of $32.2M impacting its December 31 2019 financial results.
Growing Profit Margin: AUDC's current net profit margins (2%) are lower than last year (7.7%).
Past Earnings Growth Analysis
Earnings Trend: AUDC has become profitable over the past 5 years, growing earnings by 35.9% per year.
Accelerating Growth: AUDC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AUDC had negative earnings growth (-70.5%) over the past year, making it difficult to compare to the Communications industry average (-25.2%).
Return on Equity
High ROE: AUDC's Return on Equity (4.3%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is AudioCodes's financial position?
Financial Position Analysis
Short Term Liabilities: AUDC's short term assets ($132.6M) exceed its short term liabilities ($97.4M).
Long Term Liabilities: AUDC's short term assets ($132.6M) exceed its long term liabilities ($54.0M).
Debt to Equity History and Analysis
Debt Level: AUDC's debt to equity ratio (4%) is considered satisfactory.
Reducing Debt: AUDC's debt to equity ratio has reduced from 7.3% to 4% over the past 5 years.
Debt Coverage: AUDC's debt is well covered by operating cash flow (630.8%).
Interest Coverage: AUDC earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: AUDC has a high level of physical assets or inventory.
Debt Coverage by Assets: AUDC's debt is covered by short term assets (assets are 36.1x debt).
Next Steps
Dividend
What is AudioCodes's current dividend yield, its reliability and sustainability?
1.08%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: AUDC's dividend (1.08%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: AUDC's dividend (1.08%) is low compared to the top 25% of dividend payers in the US market (3.69%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, AUDC has been paying a dividend for less than 10 years.
Growing Dividend: AUDC's dividend payments have increased, but the company has only paid a dividend for 2 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (183.9%), AUDC's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
11.8yrs
Average management tenure
CEO
Shabtai Adlersberg (66yo)
27.1yrs
Tenure
US$1,451,858
Compensation
Mr. Shabtai Adlersberg serves as the Chief Executive Officer of AudioCodes, Inc. Mr. Adlersberg co-founded Audiocodes Ltd. in 1993 and has been its Chief Executive Officer and President since 1993. Until DÂ ...
CEO Compensation Analysis
Compensation vs Market: Shabtai's total compensation ($USD1.45M) is below average for companies of similar size in the US market ($USD2.47M).
Compensation vs Earnings: Shabtai's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 27.1yrs | US$1.45m | 16.21% $114.2m | |
| CFO & VP of Finance | 3.6yrs | US$605.90k | no data | |
| Director of Investor Relations | 0yrs | no data | no data | |
| Chief Legal Officer & Company Secretary | 0yrs | no data | no data | |
| Vice President of Human Resources | 19.9yrs | no data | no data | |
| Chief Operating Officer | 2.1yrs | US$302.12k | no data |
11.8yrs
Average Tenure
50yo
Average Age
Experienced Management: AUDC's management team is seasoned and experienced (11.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 27.1yrs | US$1.45m | 16.21% $114.2m | |
| Chairman of the Board | 7.2yrs | no data | no data | |
| Outside Director | 20.1yrs | no data | no data | |
| Outside Director | 23.1yrs | no data | no data | |
| Independent Director | 6yrs | no data | no data | |
| Executive VP | 1.6yrs | US$826.19k | no data | |
| Independent Director | 16.7yrs | no data | no data |
16.7yrs
Average Tenure
62yo
Average Age
Experienced Board: AUDC's board of directors are seasoned and experienced ( 16.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
AudioCodes Ltd.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: AudioCodes Ltd.
- Ticker: AUDC
- Exchange: NasdaqGS
- Founded: 1992
- Industry: Communications Equipment
- Sector: Tech
- Market Cap: US$704.587m
- Shares outstanding: 29.18m
- Website: https://www.audiocodes.com
Number of Employees
Location
- AudioCodes Ltd.
- 1 Hayarden Street
- Airport City
- Lod
- 7019900
- Israel
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AUDC | NasdaqGS (Nasdaq Global Select) | Yes | Ordinary Shares | US | USD | May 1999 |
| AU1 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | May 1999 |
| AUDC | TASE (The Tel-Aviv Stock Exchange) | Yes | Ordinary Shares | IL | ILS | May 1999 |
Biography
AudioCodes Ltd. designs, develops, and sells voice over IP (VoIP), converged VoIP, and data networking solutions, products, and applications for enterprise unified communications, contact centers, service provider business services, mobile VoIP, and cloud virtualized data centers worldwide. The company’s products include IP phones, session border controllers (SBC), media gateways, multi-service business routers, huddle room solutions, managed IP Phones, and survivable branch appliances; CloudBond 365, an adaptable solution for the data center, customer premises or the branch; CloudBond 365 CCE appliances; User Management Pack 365, a software management application; VoIP management and routing, a suite of lifecycle applications for large scale cloud or premises-based unified communications deployments. It also provides MobilityPLUS, a mobile VoIP solution; VocaNOM call routing products; SmartTAP call recording products; Auto Attendant, a tool for managing inbound calls and delivery services; Fax Server, a tool for managing inbound and outbound enterprise fax transmissions; SIP Phone Support, a value-added application for SBC and gateways; signal processor chips; communications boards; and voice and data logging hardware integration board products. In addition, the company offers planning, implementation, operations, and support services, as well as consulting and training services. It primarily markets and sells its products through a direct sales force and sales representatives to original equipment manufacturers, system integrators and distributors, and network equipment providers in the telecommunication and networking industries. The company was incorporated in 1992 and is headquartered in Lod, Israel.Â
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 23:42 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.